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KUCHING: The Chief Minister Abang Johari Openg today presented Sarawak’s budget for 2021 totaling RM9.83 billion.
Introducing the budget with the theme “Revitalizing the economy towards a resilient, supportive and inclusive society,” he said it was geared towards the state’s aspirations to become a high-income economy by 2030.
“This is a development-oriented budget, with 6.3 billion ringgit or 62% allocated for development expenses and the remaining amount to be used as operating expenses.
“A total of RM4.25 billion will be set aside for rural areas, and the remaining RM2.05 billion in urban areas to close the development gap between major cities and rural towns,” he said.
The state is allocating RM384 million to implement Autonomous Rapid Transit to address traffic congestion in Kuching and Samarahan.
To help Sarawak residents who belong to the low-income group, Abang Johari said, the state government is introducing a new Sarawak rental assistance plan next year.
“Under the scheme, eligible applicants will receive a rental assistance of RM200 per month for a maximum period of 36 months.
“We are allocating RM48 million for the plan which is expected to benefit 20,000 households,” he said.
Among the other items listed in the state budget are RM1.15 billion for a coastal road network, RM494 million for a second major highway, RM252 million for tourism programs, RM93 million for affordable housing projects in Kuching, Sibu, Mukah, Betong and Miri. , 1.12 billion ringgit for the transformation of agriculture, 10 million ringgit for the financing of tuition fees for high school students, 50 million ringgit for the Sarawak microcredit scheme and a special aid fund of 19 million ringgit to provide interest-free loans to small and medium-sized businesses.
He also announced an allocation of RM20 million for the state’s first international school to be located in Kuching.
He said the budget is expected to have a surplus of RM180 million, based on estimated state revenue amounting to RM10.01 billion.
On the state’s performance so far this year, Abang Johari said the economy is expected to drop between 3.5% and 5% in all sectors, with the tourism and manufacturing sectors being the most affected.
He said Sarawak posted a negative inflation rate of 1.6% in the first nine months of the year.
“The Sarawak Department of Labor had reported a total of 1,956 layoffs as of September, mainly in the hotel, restaurant, retail and construction sectors.
“We anticipate that there will be an increase in the unemployment rate of between 5% and 5.5%,” he said.
